Use Cases from Around the World

The long-term algorithms in PLEXOS provide optimal solutions to the questions of what, when, and where to invest in generation and transmission assets for power water and gas.

The long-term model’s features include:

  • Modeling capital and production costs
  • Regional capacity reserve margins and ancillary services
  • Maximum number of units built and retired
  • Technical and financial life spans
  • Fuel availability and maximum fuel usage
  • Minimum energy production
  • Co-generation and other must-run conditions
  • Emission production limits and renewable energy targets
  • Hydroelectric storage targets and releasing policies
  • Wind, solar and battery energy storage system project timing and sizing

Assign practically any rule with the constraint, decision variable and conditional classes:

  • Maximum number of units built and retired
  • Technical and financial life spans
  • Gas availability, constraints, costs and obligations
  • Conditional projects
  • Portfolio interdependencies
  • Deterministic or stochastic
  • Complete global LNG integration

The long-term model is fully integrated with the mid- and short-term simulation phases to ensure seamless solutions. You can run the long-term either separately or in sequence with any other phase. Once you make an investment decision in the long-term solver, it is automatically passed down to other integrated tools, such as the chronological simulation, which emulates a market clearing engine for more detailed analysis.

Whether you’re designing a new policy or navigating an existing regulatory landscape, you need a platform that can model life-like dynamics can give you actionable insights.

PLEXOS simulates planned and random outages in generation, transmission and gas pipeline resources in a powerful Monte Carlo simulation framework, and the solution includes a “Reserve” class of objects to specifically model various ancillary services. You can account for external constraints as well as internal constraints, such as crew limits.

Reserve adequacy studies provide solutions to:

  • Vary production costs with tranches
  • Create dynamic production constraints
  • Capture costs with fixed and variable charges
  • Set long-term reservoir targets
  • Optimize short-term production
  • Model decommissioning and new builds
  • Optimize security from route diversification

Gas production is complex and expensive, so being efficient while minimizing costs is crucial. Add the increasing uncertainty of renewables into the equation, and you also need to reduce the risk of waste and simulate many multi-asset scenarios.

Modeling with PLEXOS gives you the tools to:

  • Capture changing production costs
    • Enter multi-step functions to model the production cost as a function of the production volume
  • Understand risks and manage uncertainty using Monte Carlo or stochastic optimization
    • Any input can be stochastic
    • Compute single optimal production plans with stochastic optimization
    • Randomly sample pipeline forced outages with Monte Carlo
    • Optimize LNG trains
  • Model field production
    • Production costs vary with tranches
    • Dynamic production constraints
    • Costs captured with fixed and variable charges
    • Long-term reservoir targets and short-term production optimisation
    • Expansion and decommission modeling
  • Model gas contracts
    • Capture multi-tier pricing in contracts
    • Contracted quantity (ACQ, MDQ, MHQ)
    • Take or pay requirements
    • Network access charges

These tools are for valuing pipelines and storages, as well as solving for what to do with them. From managing line packing to avoid park and loan charges to planning the end volumes in your storage, you will make the best choices for managing your costs.

Gas pipeline modeling:

  • Forced outages and maintenance
  • Line packing
  • Flow constraints
  • Route-specific gas allocation
  • Fixed and variable charges
  • Expansion and decommissioning

Gas storage modeling:

  • Injection and withdrawal charges and limits
  • End volume targets
  • Ramping constraints
  • Energy usage and loss rates
  • Expansion and decommissioning modeling

Feel greater confidence in your price forecasting by simulating real-world markets and energy systems. PLEXOS accurately forecasts price with inputs such as:

  • Gas demand
  • Gas field product cost
  • Storage charges
  • Contractual obligations
  • LNG charges
  • Gas pipeline flow charges
  • Gas processing plan charges

Use the model’s “scenario class” to perform “what if” sensitivity analyses, then compare the outputs in the integrated solution viewer.

Impact the bottom line by minimizing your fuel and operational costs across your portfolio of assets. By performing optimization studies with PLEXOS, you can optimize dispatch subject to emissions, transmission or any other related constraints for the most true-to-life simulations.

  • Operations: solve unit commitment and economic dispatch problems
  • Generating asset evaluation: quantify the value, run simulations with and without them and calculate the production cost differences
  • Budgeting: predict production cost, fuel consumption, traded energy, emissions production and more; support your decisions for rate design, fuel procurement, emission allowance allocation and more
  • Long-term capacity expansion: determine optimal investment and retirement of the generation or transmission facility; meet projected load growth while complying with regulations and requirements

Use the “market class” to instantly switch from cost minimization to profit maximization. You can also model transactions between external forward or spot markets based on stochastic sample prices, historical prices or PLEXOS forecasts.

PLEXOS models can solve for questions like:

  • Should I inject gas
  • Should I withdraw from storage
  • Should I sell to the spot market
  • Should I buy from the spot market
  • Should I burn in a power station
  • Should my generator sell surplus gas

PLEXOS provides end-to-end LNG modeling that optimizes shipping and maximizes profits. Link international prices, arbitrage between supply and demand regions to better appreciate the impact of LNG prices on any given system as well as to guide decision making at the time of contracting.

  • Capture shipping route and distance costs
  • Model shipping capacity
  • Capture liquefaction capacity and costs
  • Model re-gasification dynamics and hub sales
  • Capture ship docking constraints
  • Account for trucking logistics

The transition to a lower carbon economy is driving the evolution of gas supply planning and power planning needs. Taking a whole-system view to optimize gas and electricity creates new insights and opportunities compared to the siloed approach. Use PLEXOS to master the management of fuels, capacity, and planning across your organization and deliver better financial performance.

  • Value gas and electric storage options with dual fuel optimization
  • Evaluate gas and electric contingencies as well as the reliability impacts on the wider system
  • Calculate least cost opex and capex co-optimization for expansion and retirement
  • Create full end-to-end LNG modeling and co-optimize with electricity
  • Identify emergence of gas constraints with generation retirements

Bring together the fully optimized chain from gas production basin to the electricity delivered load.